Nikki Baird

Social Shopping Climbers

March 5, 2010

FROM RETAILWIRE:
Social shopping websites such as Gilt.com, Hautelook, RueLaLa and Woot are the hot new thing in retailing, combining limited time sales with fashion and home goods from top luxury designers and unique boutique brands. Do you think this is a model that established luxury retailers may adapt for their own purposes?      [more...]

Well, first, I protest the use of the term "social shopping" when applied to these sites. These are flash sale sites, and some may have more social elements to them than others, but they are not social shopping sites - not anything approaching the social aspects of, say, a Polyvore (www.polyvore.com - awesome, fantastic site). The only social connection that Gilt, for example, has, is that you invite your friends to get in on the deals, and you can see which products are currently in other shoppers' carts as you are shopping yourself (a helpful way to create a sense of urgency around limited sale items).

I was just at NRF's Retail Innovation & Marketing Conference yesterday, and a panel of VCs spoke a lot about the flash sales model--positively. They felt that the flash sales model is difficult to replicate by big brands without some brand dilution. I'm not sure that I agree. While the speed of the supply chain is important, because you want to get your customer's purchase into her hands before she starts to have second thoughts, I think big luxury brands could pull off the same kind of model--including the invitation only exclusivity.

Some major, not-really-luxury retailers already do individual flash sales--Amazon has their lightning box deals, which you can get via Twitter, or by checking back regularly at their site. It's the same exact concept: a handful of items, offered for a limited time at a fantastic price. Heck, I got my start in retail as a Blue Light Special girl at Kmart. Luxury or not, online or in-store, flash sales are not really a new thing.